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W&D Stock Index Outperforms Broader Market in October

Stock prices of publicly traded window and door companies outperformed the broader market in October 2021. The W&D Index increased 12.2 percent compared to a 5.7 percent increase in the S&P 500 and as a result the 39.1 percent return for the S&P 500 has slightly underperformed the W&D Index return of 39.3 percent over the 12 months.

With markets nearing all-time highs, the W&D Index outperformance in October 2021 was caused by a combination of strong quarterly earnings being reported and continued momentum from the release of existing-home sales data, which reported 6.29 million units, an increase of 7 percent on a seasonally adjusted rate. Investors are keeping a close eye on home-price appreciation as prices are running up against the reality of local economic fundamentals and the prospect of tighter monetary policy starting to move mortgage rates higher. Nonetheless, record home-prices and low inventory will support high levels of residential repair & remodel activity while the new construction market increases supply in 2022.

Source: Lincoln Financial

Stock chart October 2021

Source: Lincoln Financial